Population boom and business bust in Warragul

Retailers in Warragul are blaming high council rates, expensive leases and a downturn in people shopping locally, for a drop in business over the last year. Dave Cann from the Warragul Business Group says 10 retailers have closed since December last year.

"The last couple of Christmas' have been tough for most people not only have we seen a plateuing of growth within the retail sector, we're now starting to see businesses closing up, not renewing leases," says Dave Cann from the Warragul Business Group.

Baw Baw Shire Mayor Murray Cook says the towns population is expected to almost double by the year 2036, to more than 70,000 people.

However Mr Cann says this does not automatically translate into business for local retailers.

"We're finding that most of the people living here are working in the city or the [Latrobe] Valley and so they still have their bases there, they still have their connections there and consequently do a lot of their shopping there," he says.

Gordon Burrell operates two retail businesses in Warragul, he's worked in the area for nearly 30 years.

This year he has decided to amalgamate his two stores into one.

"Just trying to cut our costs because the rates in Warragul are not the cheapest around and ongoing costs just keep going up... we have very little foot traffic through the store," Mr Burrell says.